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HomeMy WebLinkAboutResolutions - 2009.07.15 - 9778Miscellaneous Resolution #09133 June 15, 2009 By: Finance Committee, Thomas Middleton, Chairperson IN RE: County Executive/Auditing Division — Revised Imprest Petty Cash Procedures To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS the principle purposes of imprest cash funds are to reimburse nominal cash payments for authorized County expenditures (petty cash funds) and to provide customer change in the event a cash purchase is less than the amount rendered (change funds); and WHEREAS the Department of Management and Budget 's "Imprest Petty Cash Procedures" assigns the Auditing Division the responsibility to approve requests to initiate imprest cash funds, increase established imprest cash funds, and approve petty cash purchases over $50.00; and WHEREAS audit organizations and individual auditors, must be free from personal, external, and organizational impairments to independence, and must avoid the appearance of such impairments; and WHEREAS auditing organizations must abide by two overarching independence principles: (1) audit organizations must not provide non-audit services that involve performing management functions or making management decisions and (2) audit organizations must not audit their own work or provide non-audit services in situations in which the non-audit services are significant or material to the subject matter of audits; and WHEREAS the responsibilities assigned in the Department of Management and Budget's "Imprest Petty Cash Procedures" are non-audit services that place the Auditing Division in violation of the overarching independence principles and impart' its ability to independently conduct audits of the county's imprest cash funds; and WHEREAS the Auditing Subcommittee reviewed these changes on June 11, 2009 and is in support of this resolution. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners approves the Department of Management and Budget's revised "Imprest Petty Cash Procedures" transferring the responsibility for approving imprest petty cash fund requests to the Treasurer's Office and the approval of petty cash purchases over the $50.00 limit to Fiscal Services. Chairperson, on behalf of the Finance Committee, I recommend approval of the foregoing resolution. FINANCE COMMITTEE FINANCE COMMITTEE Motion carried unanimously on a roll call vote w,th Gingell absent. Revised O/2009 OAKLAND COUNTY, MICHIGAN PETTY CASH PROCEDURES PURPOSE The following sets forth the County's procedures for establishing, disbursing and reimbursing petty cash funds. SCOPE This procedure is applicable to all County Departments. GENERAL Departments are encouraged to use a County procurement card fully as a preferred alternative for petty cash. Where the use of a procurement card is not appropriate, petty cash may be used. DEFINITION There are two types of cash funds approved for use by Oakland County, Petty Cash and Change Fund. The principal purpose of the pettycash fund is to reimburse nominal cash payments for authorized County expenditures. The change fund is to provide customer change in the event a cash purchase is less than the amount rendered. Petty Cash Fund: a reimbursement fund, which makes cash conveniently available for expenditures in small dollar amounts for official purposes. Change Fund: a fixed amount of cash made available to a department or division for necessary cash operations. Change funds are not to be used for reimbursement purposes. FUND ESTABLISHMENT The Department of Management and Budget of Oakland County will approve the request for the petty cash fund and the amount of fund requested. The requesting Department will fill out a "Request for New Petty Cash/Request to Increase Petty Cash" form (MB-I2). The Department Director or Division Manager must select a primary custodian and fill out a Petty Cash Custodian Appointment Form (MB-9). An alternate custodian may be selected at the same time. If an alternate custodian is selected, a Petty Cash Alternate Custodian Appointment Form (MB-10) must be filled out. All forms can be found on the Countywide "3" drive under 3:/GenCounty/Mgmtbdgt/FORIVIS/MB or on the Intranet at http://my.oakgov.com/sites/managernentbudget/Documents/Forms/AllItems,aspx . Custodians and alternates must be employees of the County; they may not be a student or temporary employee. The fund level should be based on the estimated monthly activity and the request must clearly state whether the fund is to be petty cash or change fund. .1./GenCountylvIgmtbdgt/policies&proceduresipeitycashprocedures.doe P.evised 05/2009 CHANGE FUNDS Change funds are not to be used for expenditures or reimbursement. They are otherwise managed and controlled in the same fashion as petty cash funds. Change funds are to be distinguished from petty cash funds, and should not be commingled with petty cash funds. A separate custodian must be appointed for a change fund; i.e. a single person may not be custodian for two funds. RESPONSIBILITIES OF PETTY CASH CUSTODIAN Petty cash funds are to be carefully managed, and may not be used to circumvent the County's Purchasing policies and procedures. The custodian should attend the County cash handlers class. The custodian should arrange for a secure, locked location for the fund. Only the custodian should have access and keys to that location. Petty cash funds and change funds may not be used to cash checks of any kind. A petty cash fund may not be used to make personal loans. When reimbursement is made, the custodian must sign and date the receipt and put "paid" on the receipt. Petty cash funds and change funds are subject to audit and must be "whole" at all times; i.e. the fund custodian must always have in hand a sum of cash and receipts equal to the original advance. In the event of an audit, the custodian must be present at all times during the audit. Proper identification should be presented by the auditor before the audit begins. The custodian should have a copy of the most current Petty Cash procedures on hand. The custodian should be using the most current MB forms and all forms should have proper authorizing signatures. Shortages of $20.00 or More should be reported to the Auditing Division as soon as they are realized. No single expenditure from a petty cash fund may exceed $50.00. A series of minimal cash purchases may not be made in order to avoid regular established purchasing procedures. The Manager of Fiscal Services has the authority to make exceptions when special or unusual circumstances apply. Approval for exceptions must be received prior to reimbursement. An e-mail request to the Manager of Fiscal Services with a response giving permission must be attached to the Petty Cash Request For Reimbursement form (MB-I l). If an unallowable purchase is made through a petty cash fund, the custodian will be held personally responsible for reimbursing the fund. Reimbursement for petty cash expenditures must be in the exact amount of the expense(s), and must be documented by original detailed receipts. Each expenditure from petty cash must be documented: the date of the transaction, a description of the expenditure including its County related purpose, the exact amount expended, the appropriate account numbers, and all required signatures. If an original receipt cannot be obtained or an original receipt is not available, then an affidavit must be filled out. The affidavit of lost/missing receipt (MB-16) can be found on the Countywide "I" drive under GenCounty/Mgmtbdgt/FORMS/affidavit of lost/missing receipt or on the intranet at littp://rn v.oa Q0V.COmisi testrnanagementbudWidocurn entsiforms.a terris.aspx. J:/GcnCountyiNigmtbdgtipolicies &proceduresipettycashprocedw-es.doc Revised 05/2009 When the cash on hand is depleted, the fund custodian must prepare a "Request to Replenish Petty Cash Fund" form (MB-13). The request for replenishment should be submitted to the appropriate department/division accounting personnel for replenishment, who will issue a replenishment check to the custodian. Upon receipt of the replenishment check, the custodian will immediately cash said check and return the monies to the fund. Replenishment need only be made as frequently as the fund requires but no less than annually. All petty cash funds MUST be reconciled and replenished by the end of the Fiscal Year in which the funds were dispersed. TYPES OF EXPENDITURES Payment of express shipping charges (UPS, FedEx); minor office supplies not readily available, emergency repair items, and light refreshments (doughnuts, bagels, coffee, etc.). Refreshment items may be reimbursed ONLY in those circumstances where the GENERAL PUBLIC participates and which are an official Oakland County meeting or function. A list of attendees and an agenda must accompany the petty cash request for reimbursement form (MB-11). Reimbursement for refreshments for meetings among Oakland County employees, even though from different departments is NOT permitted. Reimbursement for a meal of any type for County employees at an on or off-site business meeting or on extended work hours, is NOT permitted. Expenses for travel and conference, such as parking, are NOT permitted. FORMS The following are Management and Budget forms currently used for Petty Cash Fund and Change Funds. They are currently located on the Countywide "J" drive under "GenCounty\Mgmtbdgt\FORMS..." or on the Intranet at hrtp://my.oakeov.cornisites/manailernentbudzetDocuments/ForrnsiAliltems.aspx. MB-9 Petty Cash Custodian Appointment Form — Used to establish the current custodian of any given Petty Cash fund or Change fund. MB-10 Petty Cash Alternate Custodian Appointment Form — Used to establish an alternate custodian for a Petty Cash fund or Change Fund. May be used in the absence of the current custodian or in conjunction with the custodian as back-up. MB- 11 Petty Cash Request for Reimbursement — Used to request reimbursement for County related expenses under $50.00. MB-12 Request for New Petty Cash/Request to Increase Petty Cash Used to request a new petty cash fund or an increase to an existing petty cash fund upon approval of the Department of Management and Budget. MB-13 Request to Replenish Petty Cash Fund — Used by custodian to request reimbursement of their Petty Cash-fund. MB-16 Affidavit of Lost/Missing Receipt — Used by employees when an original receipt needed was not available at time of purchase or if the original receipt needed for reimbursement was lost. 3:/GenCountyiMgmtbdgt/po1icies&procedurestpettycashprocedures.doc 4 Resolution #09133 July 15, 2009 Moved by Capella supported by Woodward the resolutions (with fiscal notes attached) on the Consent Agenda be adopted (with accompanying reports being accepted). AYES: Burns, Capello, Coleman, Coulter, Douglas, Gershenson, Gingell, Gosselin, Greinnel, Hatchett, Jackson, Jacobsen, Long, McGillivray, Middleton, Nash, Potter, Potts, Runestad, Schwartz, Scott, Taub, Woodward, Zack, Bullard. (25) NAYS: None. (0) A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the Consent Agenda were adopted (with accompanying reports being accepted). I HEREBY APPROVE THE FOREGOING RESOLUTLN ACTING PURSUANT TO 1973 PA 139 STATE OF MICHIGAN) COUNTY OF OAKLAND) f, Ruth Johnson, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on July 15, 2009, with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac, Michigan this 15th day of July, 2009, Gai Ruth Johnson, County Clerk